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WTO Presentation

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WTO-AoA NEGOTIATIONS STATE OF PLAY GENESIS WTO Came into existence on 1-1-1995 with the conclusion of Uruguay Round Multilateral Trade Negotiations at Marrakesh on ... – PowerPoint PPT presentation

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Title: WTO Presentation


1

WTO-AoA NEGOTIATIONS STATE OF PLAY
2
GENESIS
  • WTO Came into existence on 1-1-1995 with the
    conclusion of Uruguay Round Multilateral Trade
    Negotiations at Marrakesh on 15th April 1994, to
  • Provide common institutional framework for
    conduct of trade relations among members
  • Facilitate the implementation, administration and
    operation of Multilateral Trade Agreements
  • Lay down Rules and Procedures Governing Dispute
    Settlement
  • Provide Trade Policy Review Mechanism

3
Agreement on Agriculture (AoA)
  • To establish a fair and market oriented
    agricultural trading system through substantial
    progressive reduction in agricultural support and
    protection resulting in correcting and preventing
    restrictions and distortions in world
    agricultural markets.

4
AREAS OF COMMITMENTS
  • Domestic Support i.e. subsidies by
    Governments to domestic producers
  • Market Access i.e. the disciplines on import
    restraints and tariffs and
  • Export Competition i.e. export subsidies and
    other forms of export subsidisation.

5
Domestic Support
  • Green Box - Research, Extension, PDS,
    Decoupled Payments
    etc
  • Blue Box - Production Limiting Subsidies
  • Amber Box - AMS-subject to reduction
    commitments viz
  • - Product specific (MSP)
  • - Non product specific (input subsidies-fert.
    Power,
  • irrigation)
  • Total Agricultural support reduction (Base
    period 1986-88)
  • Developed countries 20 (1995 - 2000)
  • Developing countries 14 (1995 - 2004)
  • De-minimis level
  • Developed countries 5
  • Developing countries 10 .

6
Market Access
  • All non-tariff barriers including, Quantitative
    Restrictions to be abolished
  • Tariff cut Commitments
  • Developed countries - Average 36
    - Minimum 15 (1995
    - 2000)
  • Developing countries - Average 24
    - Minimum 10
    (1995 - 2004)

7
IMPACT ON INDIA (Market Access)
  • Bound tariff levels for India
  • Primary products 100 Processed products
    150 Edible oils 300
  • (Some exceptions (119 items) are governed by
    other provisions of GATT Art.II 1(b).

8
Export Subsidies
  • Cut in value of subsidies
  • Developed countries - 36 (1995 - 2000)
  • Developing countries - 24 (1995 - 2004)
  • Cut in subsidised quantities
  • Developed countries - 21 (1995 - 2000)
  • Developing countries - 14 (1995 - 2004)
  • (Base Period (1986 - 1990)
  • To develop internationally agreed
    disciplines to govern
  • export credits, guarantees or insurance
    programmes.

9
Doha Ministerial Conference
Fourth Ministerial Conference on WTO was held at
Doha, Qatar from 9-13th November 2001 This
conference, inter alia, reviewed the progress of
AoA negotiations and provide guidelines for
future. The Ministers at Doha committed
themselves to negotiation aimed at substantial
improvement in market access, substantial
reduction in trade distorting domestic support
and gradual phasing out of export subsidies.
The special and differential treatment - an
integral part of the mandated agricultural
negotiations.
10
India Seeks
  • Protecting our food and livelihood security by
    having sufficient flexibility for domestic policy
    measures.
  • Protecting domestic producers from the surge in
    imports or significant decline in import prices.
  • Substantial reduction in export subsidies and
    domestic support to agriculture in the developed
    countries for greater market access to products
    of developing countries.
  • Finally, a more equitable fair trading
    framework for
  • agricultural commodities
  • MARKET ACCESS ISSUES CAN NOT BE SEEN IN ISOLATION
    TO SUBSIDY REGIME

11
Present Stage of Negotiations
  • The third phase of negotiations ended in
    March-2003.
  • As per original schedule, the modality of the
    Agreement were to be established by 31.03.2003.
  • The deadline for establishment of Modality has
    been missed
  • In the last one year a number of drafts for
    establishment of Modality have been proposed
  • The major drafts include, Harbinsons original
    and revised draft, US-EU combined draft, Original
    Cancun Draft and the Derbez Text (Cancun revised
    draft )

12
Present Stage of Negotiations
  • The Cancun Ministerial failed to arrive at any
    agreement on modality for agriculture.
  • There was no willingness on part of developed
    countries to recognize the genuine concerns of
    the developing countries, especially in
    agriculture
  • The US EU attempted to drive their own agenda,
    at the expense of Doha Declaration
  • The concerns of the developing countries were
    expressed by a group viz. G-20 at Cancun.
  • India, China, Brazil, Argentina and South Africa
    were the moving spirits behind the formation of
    this Group.

13
Present Stage of Negotiations
  • Some of important features of the two Harbinson
    Drafts are as follows
  • Includes the crucial numbers. Framework proposes
    modalities.
  • Tariff reduction higher than Uruguay Round, using
    the concept of average and minimal reductions
    based on tariff bands.
  • Introduction of a new concept of Special Products
    for developing countries, average tariff
    reduction on SP to be at 10, and minimum
    reduction, 5.
  • Introduction of Safeguard Mechanism for
    developing countries.

14
Present Stage of Negotiations
  • Reduction mainly in the amber box support by
    developed countries.
  • Reduction in the De-minimis support for
    developed countries
  • Proposals only to discipline the Blue Box
    payments, no reduction.
  • Proposals to tighten the criteria for Green Box
    payments for developed countries, expansion of
    Green Box for developing countries
  • Elimination of direct export subsidies over a
    longer period. Indirect subsidies no final
    proposal

15
Present Stage of Negotiations
  • The SD for the developing countries remains on
    the lines as Uruguay Round.
  • The SD for developing countries include, a
    marginally lower rate of tariff reduction, a
    longer implementation period, provision of
    Special Products with lower tariff reduction,
    provision of Safe guard mechanism, retention of
    provisions at para 6.2 of the present AoA, with
    possible widening and retention of de-minimus in
    Amber Box Support

16
Present Stage of Negotiations
  • The US-EU draft, and the two Cancun drafts are
    similar in nature and their main features are
  • The drafts propose only a framework. They dont
    indicate the key numbers
  • Aggressive reductions in tariff by using a hybrid
    formula. Swiss formula to be a component of the
    hybrid formula
  • Reduction for developing countries also to be by
    same formula, with lower final commitment.
  • SPs to be limited in numbers.

17
Present Stage of Negotiations
  • Reduction mainly in the amber box support by
    developed countries.
  • Reduction in the De-minimis support for
    developed countries.
  • Capping of product specific support in Amber Box
  • Expansion of Blue box by inclusion of direct
    payments.
  • Capping of the expenditure under new Blue Box,
    with a possible phased reduction over the
    implementation period.
  • No reduction in Green Box payments. The criteria
    for Green Box payments may possibly be reviewed.
  • Reduction commitments for developing countries
    lower with longer implementation period.

18
Present Stage of Negotiations
  • The provisions of Article 6.2 to be continued.
  • The de-minimus for the developing countries to be
    retained at 10.
  • Elimination of export subsidies over an extended
    period during the implementation period.
  • The trade distorting elements of export credit to
    be similarly treated.
  • No specific timeframe for elimination suggested.

19
Indias stand on various drafts
  • The drafts fail to recognize the inter-linkages
    in the three pillars of AoA.
  • The reductions suggested in domestic support are
    minimal, as compared to the steep reduction in
    tariff included in the Draft.
  • The drafts fail to recognize the food security
    and livelihood concerns of the developing
    countries.
  • The drafts are not meeting the spirit of Doha
    Development Agenda.

20
Developments Post-Cancun Ministerial
  • The G-20 has survived the pressures of the
    developed countries and almost remained united on
    agriculture issues.
  • The Cancun process led to loss of confidence of
    developing countries in the developed countries.
  • The negotiations have formally not yet started at
    Geneva.
  • The stress, at present is more on arriving at
    bilateral understandings.
  • G-20 had bi-laterals with EU, one in Brazil and
    other in Geneva.
  • India has had separate bilateral discussions with
    USA as well as EU.

21
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